Ascot Capital adds a dose of Probiotec to its portfolio
WA-based property developer and syndicator Ascot Capital has bought a Melbourne manufacturing facility from ASX-listed pharmaceuticals firm Probiotec for $24.5 million in a sale-and-leaseback style deal.
The transaction for the 15,201 square metre plant was struck on an initial rental yield of 6.4 per cent. As part of the deal, Probiotec has agreed to a 20-year lease term from settlement.
The facility sits on 31,478 sqaure metre m site on Cherry Lane in Laverton North, in the heart of Melbourne’s western industrial precinct.
Under the sale agreement, Probiotec receives $21.5 million in cash. A further $3 million will be held in trust and released after development works are completed by Probiotec at the 85 Cherry Lane property.
The development includes the construction of a new purpose-built warehouse and manufacturing facility. The work is estimated to cost $3 million and is scheduled for completion within 12 months.
“This transaction continues the company’s objective of unlocking shareholder value and focusing on Probiotec’s core manufacturing business,” said Probiotec’s managing director, Wes Stringer.
“The expansion of our manufacturing footprint will allow Probiotec to continue the strong growth in our manufacturing business by adding additional capacity and driving operational efficiencies.”
Probiotec was advised by JLL and Arnold Bloch Leibler. JLL’s Tony Iuliano, Adrian Rowse and Brad Esler brokered the property.
Major players remain active in Melbourne’s industrial west. Among them, Charter Hall hopes to develop a $330 million logistics park after acquiring a 58-hectare parcel of land.
In July, Macquarie-backed LOGOS took over a large site at Truganina, buying it from petrol king and property player Nick Adrianakos in a deal worth around $28 million.
Ascot itself is also busy around the country, with deals such its recent acquisition of a three-asset Perth industrial portfolio in a counter-cyclical, off-market deal for $25.5 million.
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